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For organizations seeking to emulate Transformed organizations, it is useful to know which actions have the biggest impact on their level of sophistication. Analysis showed that of all the characteristics exhibited by Transformed organizations, their proficiency (represented by the percentages) in six characteristics distinguished them the most (see Figure 10).

The breadth of these leading characteristics suggests that excellence in all three analytics competencies noted in our study is fundamental to the competitive use of analytics. An organization may be able to capture, integrate and analyze its data, but it will not likely be able to act on what it finds unless it has a culture that is ready to embrace ideas that depart from intuition or experience. For example, a leading global bank transformed its operations when it decided to analyze the impact of debit and credit card purchases on mortgage default settlements. The bank was able to use this new customer information effectively because it developed a culture that encouraged multiple departments to collaborate on managing, understanding and acting quickly on data and ideas that went above and beyond traditional approaches to lending decisions.

FIGURE 10: Key Characteristics of a Transformed Organization

FIGURE 10: Key Characteristics of a Transformed Organization Transformed organizations rate themselves as highly effective at each of the key characteristics, represented by the percentages.

In using analytics as a strategic asset core to their business and operations, Transformed organizations embed data-based insights into every process — from scenarios that manage risk, to algorithms that process orders coming in through new digital channels. Going one step further, they also empower employees to act confidently and decisively in a fast-paced marketplace. For example, a global telecommunications company faced customer attrition that was rising by double-digit percentages. It quickly succeeded in stemming these defections after using social network analysis to re-segment its portfolio, then comparing segment profitability to create customized solutions for use by call center employees. Only by providing data and insight to employees across the enterprise are organizations able to benefit from fresh perspectives of customers and operations.

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About the Authors

David Kiron is the Executive Editor of Innovation Hubs at MIT Sloan Management Review. Rebecca Shockley is the Business Analytics and Optimization Global Lead for the IBM Institute for Business Value. Nina Kruschwitz is an editor and the Special Projects Manager at MIT Sloan Management Review. Glenn Finch is the Managing Partner for North America for IBM Global Business Services’ Business Analytics and Optimization practice. Dr. Michael Haydock is the Chief Scientist for IBM Global Business Services’ Business Analytics and Optimization practice.